Rental application fees, they can run as high as $50 to $60 dollars and do not have a cap on what a property management can charge.
“We do have a rental application fee of $35. That fee just covers our background checks which in covers credit criteria background check and felony criminal background check”, says Cindy Hoppe a property manager for Bray Property Management.
Every property management company charges an application fee to cover background check costs, with background checks pricing around $32 combined both credit and criminal background check.
“It’s making them fully disclose what their fees are and we’re already doing that”, says Hoppe, “Now, different companies have different fees and they’re probably using different processing companies and the fees will fluctuate based on who you use and how many credit applications you put through a month, that kind of thing.”
But, have you ever heard of an admin fee? One property management company in Denver we called tells us this is what the fee covers.
“The admin fee is $150, this is for all the paperwork and if you wanted to use our business center for a fax or a printer, any of the paperwork that we have to print here for you, so that’s included in that $150”, says the receptionist of a Denver-based property management company, “It’s pretty standard now these days, you’ll see it anywhere else.”
“They must cover actual costs, they can’t be a profit center. Yes, we’re asking them to explain, but there’s a limited number of things that they can cover including the actual processing of the screening as well as any internal administrative costs that are associated with processing applications”, says Colorado State Democratic Representative Chris Kennedy who founded House Bill 18-1127 along with Democratic Representative Dominique Jackson.
Landlords would also be required to inform applicants of their criteria along with other criteria the applicants weren’t able to achieve when applying.
Landlords who violate these requirements, if this bill passes, would have to pay the applicant twice the application fee amount plus any court costs or attorney fees.